the romanian challenge appeal trustees' report and ... · the romanian challenge appeal...

Charity Registration No. 1011397

THE ROMANIAN CHALLENGE APPEAL

TRUSTEES' REPORT AND UNAUDITED ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 2013


LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr Keith Wright.J.P (Chair Person)Mr Nigel. J SquibbMs Sally. E SolomonRev. Fr. Wilton

Charity number 1011397

Principal address Avon House435 Stratford RoadShirleySolihullWest MidlandsB90 4AA

Independent examiner Jerroms LLPThe ExchangeHaslucks Green RoadShirleySolihullWest MidlandsB90 2EL

Bankers Lloyds TSB Bank plc9-11 Poplar RoadSolihullWest Midlands

National Westminster Bank PLC1 St Philips PlaceBirminghamWest MidlandsB3 2PP


CONTENTS

Page

Trustees' report 1 - 3

Independent examiner's report 4

Statement of financial activities 5

Balance sheet 6

Notes to the accounts 7 - 11


TRUSTEES' REPORTFOR THE YEAR ENDED 30 JUNE 2013

- 1 -

The Trustees present their report and accounts for the year ended 30 June 2013.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accountsand comply with the Charity'Trust deed, the Charities Act 2011 and the Statement of Recommended Practice,"Accounting and Reporting by Charities", issued in March 2005.

Structure, governance and managementThe charity was established by a charitable trust deed dated 22 May 1992.

The Trustees who served during the year were:Mr Keith Wright.J.P (Chair Person)Mr Nigel. J SquibbMs Sally. E SolomonRev. Fr. Wilton

Recruitment and appointing of new Trustee's is governed by a policy laid down by the Trustee's and isavaliable for inspection.

Statement of Trustees' responsibilitiesThe Trustees are responsible for preparing the Trustees' Report and the accounts in accordance withapplicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted AccountingPractice).

The law applicable to charities in England and Wales requires the Trustees to prepare accounts for eachfinancial year which give a true and fair view of the state of affairs of the Charity and of the incomingresources and application of resources of the Charity for that year.

In preparing these accounts, the Trustees are required to:

- select suitable accounting policies and then apply them consistently;

- observe the methods and principles in the Charities SORP;

- make judgements and estimates that are reasonable and prudent;

- state whether applicable accounting standards have been followed, subject to any material departuresdisclosed and explained in the accounts; and

- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity willcontinue in operation.

The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracyat any time the financial position of the Charity and enable them to ensure that the accounts comply with theCharities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed.They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps forthe prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the charity and financial informationincluded on the ebsite. Legislation in the United Kingdom governing the preparation and dissemination ofaccounts may differ from legislation in other jurisdictions.

The Trustees has assessed the major risks to which the Charity is exposed, and are satisfied that systems arein place to mitigate exposure to the major risks.


TRUSTEES' REPORT (CONTINUED)FOR THE YEAR ENDED 30 JUNE 2013

- 2 -

Objectives and activitiesThe Charity was founded in 1991 to work towards the relief of poverty and mental or physical sicknessamongst people in Romania and in particular the children by all charitable means including the provision ofmedical assistance and education.

It established the independent Romanian humanitarian foundation O Nou� Via�� (ONV) in 1997 to work withthe Romanian state and has strong representation on its management committee. RCA has for many yearshad the goal of supporting and guiding the work of ONV, rather than direct intervention by a foreign charitableorganisation, and since the early 2000s, all funds raised by RCA have been donated to ONV.

Plans for Next Year 2013 - 2014

To:

Continue the handover of fundraising to ONV, and to generally wind down fundraising activities within the UK.It is anticipated that going forward, the majority of funds used for projects within Siret and Suceava will beraised within Romania directly by ONV.

Continue support of ONV with whatever funding is available, together with mentoring members of the ONVcommittee, who have similar responsibilities to a charity trustee in the UK.

Continue working on fundraising strategies and campaigns with ONV.

Handover management of the monthly sponsorship programs currently run by RCA to ONV. This shouldfacilitate more meaningful contact between the sponsors and the recipients, and a better flow of information.

Operate within the UK for the lowest possible cost. It is not proposed to replace the transitional CEO after hiscontract ends in August.

Continue promoting the goals set out in 1991 when the charity was formed.

Achievements and performanceFundraising for Romania within the UK has become increasingly difficult for all charities over the last fewyears, and RCA's fundraising performance has been disappointing. Against this background, we are confidentthat our decision to wind down activities with the UK and concentrate on support of ONV is correct. The RCAoffice has been closed, and the charity now operates from a small serviced office, with minimal administrativeoverheads.

ONV has opened an office in Bucharest, and has started independent fundraising activities. A sponsored walkwith many commercial sponsors will take place in September. This is one of the first sponsored walksorganised by Romanians to take place in the country.


TRUSTEES' REPORT (CONTINUED)FOR THE YEAR ENDED 30 JUNE 2013

- 3 -

Financial reviewIt is the policy of the Charity that unrestricted funds which have not been designated for a specific use shouldbe maintained at a level equivalent to between three and six month’s expenditure. The Trustees considersthat reserves at this level will ensure that, in the event of a significant drop in funding, they will be able tocontinue the Charity’s current activities while consideration is given to ways in which additional funds may beraised. This level of reserves has been maintained throughout the year.

The Trustees have the powers to invest as they see fit and they also have the power to appoint investmentmanagers. At the present time there are no investments held by or on behalf of the Charity.

On behalf of the board of Trustees

Mr Nigel. J SquibbTrusteeDated: 1 November 2013


INDEPENDENT EXAMINER'S REPORTTO THE TRUSTEES OF THE ROMANIAN CHALLENGE APPEAL

- 4 -

We report on the accounts of the Charity for the year ended 30 June 2013, which are set out on pages 5 to 11.

Respective responsibilities of Trustees and examinerThe charity's Trustees are responsible for the preparation of the accounts. The charity's Trustees consider thatan audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that anindependent examination is needed.

It is our responsibility to:(i) examine the accounts under section 145 of the 2011 Act;(ii) to follow the procedures laid down in the general Directions given by the Charity Commission under

section 145(5)(b) of the 2011 Act; and(iii) to state whether particular matters have come to my attention.

Basis of independent examiner's reportOur examination was carried out in accordance with the general Directions given by the Charity Commission.An examination includes a review of the accounting records kept by the charity and a comparison of theaccounts presented with those records. It also includes consideration of any unusual items or disclosures inthe accounts, and seeking explanations from you as trustees concerning any such matters. The proceduresundertaken do not provide all the evidence that would be required in an audit and consequently no opinion isgiven as to whether the accounts present a ‘true and fair view’and the report is limited to those matters set outin the statement below.

Independent examiner's statementIn connection with our examination, no matter has come to our attention:(a) which gives us reasonable cause to believe that in any material respect the requirements:

(i) to keep accounting records in accordance with section 130 of the 2011 Act; and(ii) to prepare accounts which accord with the accounting records and comply with the accounting

requirements of the 2011 Act;have not been met; or

(b) to which, in my opinion, attention should be drawn in order to enable a proper understanding of theaccounts to be reached.

Jerroms LLP

Chartered Certified AccountantsThe ExchangeHaslucks Green RoadShirleySolihullWest MidlandsB90 2EL

Dated: 1 November 2013


STATEMENTOF FINANCIAL ACTIVITIESINCLUDING INCOME AND EXPENDITURE ACCOUNTFOR THE YEAR ENDED 30 JUNE 2013

- 5 -

Unrestricted Restricted Total Totalfunds funds 2013 2012

Notes £ £ £ £Incoming resources from generated fundsDonations and legacies 2 53,001 30,000 83,001 91,475Investment income 3 6 - 6 2

53,007 30,000 83,007 91,477Incoming resources from charitable activities 4 3,203 - 3,203 385Other incoming resources 5 5,984 - 5,984 11,560

Total incoming resources 62,194 30,000 92,194 103,422

Resources expended 6Governance costs 114,727 - 114,727 128,333

Total resources expended 114,727 - 114,727 128,333

Net (expenditure)/income for the year/Net movement in funds (52,533) 30,000 (22,533) (24,911)

Fund balances at 1 July 2012 59,021 - 59,021 83,932

Fund balances at 30 June 2013 6,488 30,000 36,488 59,021


BALANCE SHEETAS AT 30 JUNE 2013

- 6 -

2013 2012Notes £ £ £ £

Fixed assetsTangible assets 9 333 726

Current assetsDebtors 10 5,189 8,246Cash at bank and in hand 39,264 53,586

44,453 61,832Creditors: amounts falling due withinone year 11 (8,298) (3,537)

Net current assets 36,155 58,295

Total assets less current liabilities 36,488 59,021

Income fundsRestricted funds 30,000 -

Unrestricted funds 6,488 59,021

36,488 59,021

The accounts were approved by the Trustees on 1 November 2013

Mr Nigel. J SquibbTrustee


NOTES TO THE ACCOUNTSFOR THE YEAR ENDED 30 JUNE 2013

- 7 -

1 Accounting policies

1.1 Basis of preparationThe accounts have been prepared under the historical cost convention.

The accounts have been prepared in accordance with applicable accounting standards, the Statement ofRecommended Practice, "Accounting and Reporting by Charities", issued in March 2005 and the CharitiesAct 2011.

1.2 Incoming resourcesLegacies to which the charity is entitled are included in the statement of financial activities unless they areincapable of measurement.

Cash collected to which the charity is legally entitled but which has not been received at the year end isincluded as income

1.3 Resources expendedExpenditure which is charged on an accruals basis, is allocated between:

i)The costs of generating funds. These include:a) Costs of generating voluntary incomeb) Costs of fundraising tradingii) The costs of charitable activities. These comprise all the resources applied by the charity in undertakingits work to meet its charitable objectives;iii) The costs of governance. These include the costs of governance arrangements which relate to thegeneral running of the charity and the compliance with constitutional and statutory requirements.

Unrestricted funds are donations and other incoming resources received or generated for expenditure onthe general objectives of the charity.

1.4 Tangible fixed assets and depreciationTangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated towrite off the cost less estimated residual value of each asset over its expected useful life, as follows:

Plant and machinery 33% straight line

1.5 PensionsThe Charity operates a defined contributions pension scheme. Contributions are charged in the accountsas they become payable in accordance with the rules of the scheme.

1.6 Foreign currency translationTransactions denominated in foreign currencies are recorded at the rate ruling at the date of thetransaction.


NOTES TO THE ACCOUNTS (CONTINUED)FOR THE YEAR ENDED 30 JUNE 2013

- 8 -

2 Donations and legacies

Unrestricted Restricted Total Totalfunds funds 2013 2012

£ £ £ £

Donations and gifts 31,389 30,000 61,389 39,039Legacies receivable - - - 26,002Grants receivable for core activities 21,612 - 21,612 26,434

53,001 30,000 83,001 91,475

3 Investment income

2013 2012£ £

Interest receivable 6 2

4 Incoming resources from charitable activities

2013 2012£ £

Income from Raffle Tickets 3,093 385Ticket sales interest 110 -

3,203 385

5 Other incoming resources

2013 2012£ £

Gift Aid 5,984 11,560



- 9 -

6 Total resources expendedStaff Other Total Total

costs costs 2013 2012£ £ £ £

Governance costs 79,469 35,258 114,727 128,333

Staff wages costs include national insurance contributions of £10,202 (2012 £9,685)

Other costs:

Insurance 858O' Noua Viata expenses 6,000Telephone and fax 511Motor expenses 160Travelling 5,975Project consultancy fees 7,102Bookkeeping expense 3,600Accountancy 1,764Sundry expenses 949Bank charges 446Depreciation 393Incidental expenses 293Office and stationery 1,704Rent and rates 4,876Exchange rate gain 627

35,258

Payments to O'Noua Viata (a charitable foundation, established in Romania) consists of day to dayactivity costs.

7 Trustees

None of the Trustees (or any persons connected with them) received any remuneration during the year.



- 10 -

8 Employees

Number of employeesThe average monthly number of employees during the year was:

2013 2012Number Number

Site worker in Romania 1 1Fundraising & Administration 2 2

3 3

Employment costs 2013 2012£ £

Wages and salaries 79,469 75,429

There were no employees whose annual remuneration was £60,000 or more.

9 Tangible fixed assetsFixtures,fittings &

equipment£

CostAt 1 July 2012 and at 30 June 2013 8,549

DepreciationAt 1 July 2012 7,823Revaluation 393

At 30 June 2013 8,216

Net book valueAt 30 June 2013 333

At 30 June 2012 726



- 11 -

10 Debtors 2013 2012£ £

Gift Aid 4,845 6,076Prepayments and accrued income 344 2,170

5,189 8,246

11 Creditors: amounts falling due within one year 2013 2012£ £

Trade creditors 386 2,111Taxes and social security costs 1,671 -Other creditors 4,791 -Accruals 1,450 1,426

8,298 3,537

12 Related parties

Romanian Challenge Appeal has set up a Romanian charity called O Noua Viata ( A New Life) and nowwork closely with local government and the Romanian Child Protection Department. The aim is to providetraining to local Romanians to run O Noua Viata and organising fundings from within Romania so that oneday the charity will run independently of international aid. During the year £6,000 (2012 - £4,000) wasspent on day to day running of O Noua Viata.

13 Control

There is no ultimate controlling party.

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